Chicago Plugs Loophole Exploited to Buy Bottled Water Tax-Free

Chicago is striking back at consumers, retailers and wholesalers who skirt the city’s excise taxes on alcoholic beverages and bottled water by closing a tax code loophole that permits online sales to be processed tax-free.

Mayor Lori Lightfoot introduced an ordinance modifying features of the tax code which impose a sliding-scale tax on alcohol and a 5-cent-per-bottle tax on water. The proposal, introduced in a Feb. 19 City Council meeting, specifies that taxes must be remitted by any party for the “privilege of purchasing or using” alcoholic beverages and water in the city.

• A loophole has allowed some ...